Why Shares of TransDigm Fell 40% in March
TransDigm Group (NYSE: TDG) has long been a highflier among aerospace stocks, with the shares gaining more than 1,000% during a 10-year period ending last December. But the stock came crashing down to earth in March, losing 42.6% of its value, according to data provided by S&P Global Market Intelligence.
The issue was the COVID-19 pandemic, and more specifically the outbreak's impact on global travel. An unprecedented decadelong commercial aerospace up cycle appears to have come to a sudden end, and near-term estimates are going to have to come down with it.
TransDigm has carved out an attractive niche providing hard-to-engineer parts for commercial aerospace and defense platforms and supplying spare parts. That business is sure to take a hit from the pandemic, as airlines have reacted to plummeting demand for travel by cutting flights and grounding planes.
Source Fool.com
